RBI alone should not set interest rates

Abstract

The argument for central bank autonomy gathered steam only in the mid-90s. Post-2008, it has lost relevance Reserve Bank Governor Raghuram Rajan surprised markets again by raising interest rates. The surprise is heightened by the RBI’s earlier observation that it would closely monitor economic development and inflation trends. This is in sharp contrast to policy announcements in advanced countries where forward guidance is offered on a medium to long term basis. How then did RBI make such a move?. Read more at: https://www.thehindubusinessline.com/opinion/rbi-alone-should-not-set-interest-rates/article22996002.ece